Author(s): Pratibha Jena, Dr. Vishal Sood
The entire financial system depends upon the financial institutions for economic growth and compliances. Many problems have occurred over the years, and financial institutions' performance has suffered due to non-performing assets. The financial sector often employs mergers and acquisitions (M&A) as a tool for expansion, increasing operational efficiency, and increasing market share. The banking sector often employs the strategic tactic known as mergers and acquisitions (M&A) to reorganize their client companies. This study aims to examine the impact of mergers and acquisitions (M&A) announcements on the stock and financial performance of many Indian banks using the Wilcoxon Signed-Rank Test and the Mann-Whitney Test. To find out whether announcements and events cause big abnormal returns for six public sector banks, the research looks at the volatility of share prices and important financial metrics before and after these occurrences. This study aims to analyze key financial indicators including profitability, efficiency, and liquidity to determine the long-term consequences of mergers and acquisitions on banking operations. The statistics imply that all banks' financial performance was consistent, even if stock prices showed changes related to price discovery.